Agenda

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Item # 10.

Council Meeting 2023

Meeting Date:	11/08/2022
Department:	General Services
Pillars:	Excellence in Asset Management
Milestones:	Effectively utilize and promote the Silver Line development with a first mile/last mile solution

AGENDA CAPTION:

Consider Action on a Resolution Approving the Purchase of a 2022 Ford F550 Pipe Hunter Truck for the Utilities Department and Ten Treadmills for the Addison Athletic Club; and, Authorizing the City Manager to Execute the Purchase Agreements in an Amount Not to Exceed $248,281.80.

BACKGROUND:

An Asset Management System (AMS) is utilized to track the Town's assets. Staff reviews and evaluates the condition of the vehicles and equipment on an annual basis to determine which assets warrant replacement. Purchasing cooperatives solicit competitive bids from many vendors for products and services for their members. Purchasing through a cooperative streamlines the procurement process for public entities resulting in a savings of both administrative time and money. Staff identified the vendors and purchasing cooperatives in the tables below as being able to provide the replacement vehicles and equipment needed.

The Capital Equipment Replacement Fund (CERF) was established to accumulate sufficient resources to replace existing capital rolling stock and equipment that has reached the end of its useful life. Capital Equipment Replacement Fund resources are acquired through charges to operating departments. The charges are calculated using a straight-line depreciation method based on an item's expected life.

Using funds budgeted in the Fiscal Year 2023 CERF, the following vehicle and equipment is recommended for replacement based on the AMS and staff condition assessment.

Capital Equipment Replacement Funded Purchase

Item	Department	Estimated Cost	Quoted Cost	Cooperative	Vendor
*Ford 550 Pipe Hunter Truck	Utilities	$155,320.00	$161,191.80	BuyBoard	CLS Equipment
Treadmills	Addison Athletic Club	$75,000.00	$87,090.00	BuyBoard	Advanced Exercise

*Council approved the purchase of a replacement truck on November 09, 2021. Due to cancelation of the vehicle by the manufacturer, the previously approved vehicle could not be procured (no 2023 Ford F-550 chassis are available). This is the Town's next, best option.

The differences between the estimated and quoted prices are due to rapidly changing market conditions.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Purchase of F550 and Treadmills